Countrys LNG regassification capacity may triple by 2017, says report

Written by Neha Pal | Neha Pal | New Delhi | Updated: Mar 30 2012, 08:33am hrs
Indias LNG re-gassification capacity is likely to triple between 2011 and 2017 from 13.6 million tonnes per annum (mtpa) to 35 mtpa, with an additional 15 mtpa of capacity in the planning stage, according to a report by Ficci and Mckinsey and Company. Pipeline infrastructure is also not expected to constrain growth in gas demand.

India's current consumption of gas is about 160 million metric standard cubic metre per day (mmscmd), of which, 110 mmscmd is met through domestic production.

According to the report, the carrying capacity is set to double by 2017 from 330 mmscmd to 630 mmscmd with another 240 mmscmd of additional capacity emerging a year or two later. Overall, Indias trunk pipeline network and its connectors will cover almost all demand hubs by 2017. India can potentially access an additional 70 to 100 mmscmd from alternative domestic sources of gas by 2017, but would still need to rely on LNG imports for the remaining demand.

The report further says that while LNG demand in the rest of Asia is increasing but is relatively fragmented. As a result, India is set to become one of Asia's most important LNG destinations over the next 10 to 15 years.